The interim government has announced plans to divest 16 ready-made garment companies owned by the loan-defaulting conglomerate BEXIMCO Group. Additionally, several loss-making entities under the group will be shuttered, leaving only profitable ventures like BEXIMCO Pharmaceuticals operational.

The decision emerged from a meeting of an 11-member advisory committee formed to assess the labor and business conditions of industrial establishments within the BEXIMCO Industrial Park. The committee’s primary mandate is to recover billions of dollars in defaulted loans tied to the group.

Categorization and Decisions

BEXIMCO Group’s 169 companies have been categorized into three groups:

• Category A: Profitable entities, including BEXIMCO Pharmaceuticals.
• Category B: Comprising 32 companies, of which 16 are marked for sale.
• Category C: Loss-making entities slated for closure.

The committee decided to pay workers of the loss-making companies three months’ wages and benefits before closure. Janata Bank, the conglomerate's primary lender, will provide approximately Tk 180 crore for this purpose.

Implementation Plan

The advisory committee outlined several critical steps:

• Sale of B Category Companies: Janata Bank will finalize Expressions of Interest (EOIs) for their sale by December 9, notifying the Ministry of Labor and Employment.
• Legal Measures: The Ministry of Finance will fund legal proceedings to address ongoing High Court cases and finalize the administrator's scope.
• Share Transfer Oversight: The Bangladesh Securities and Exchange Commission (BSEC) will work with an appointed administrator to oversee share transfers within a week.

Responding to the decisions, Osman Kaysar Chowdhury, Director of Finance and Corporate Affairs at BEXIMCO Group, expressed skepticism. “The group was neither invited to the November 28 meeting nor officially informed of the decisions,” he told The Mirror Asia. Chowdhury questioned the categorization process and suggested that opening letters of credit (LCs) could yield better outcomes than selling B-category companies.

Labor Secretary AHM Safiquzzaman declined to comment on the implementation timeline, while Finance Advisor Salehuddin Ahmed stressed the importance of ensuring fair wages and improved working conditions, citing frequent worker protests as a growing concern.

Janata Bank, burdened by BEXIMCO’s non-repayment, faces financial pressure to fund the workers’ salaries. Managing Director Mozibur Rahman confirmed the bank’s board decision to disburse the necessary amount and provide detailed company information to the Bangladesh Investment Development Authority (BIDA) by December 9.

The government’s move to reorganize and divest segments of the BEXIMCO Group signals a determined effort to recover public funds while addressing labor issues and sustaining viable businesses.